Rental Property Investor · Charlotte, NC · Member since 2019 · 100 posts · 26 votes
The time has nearly come, I’ve been on bigger pockets and researching and reading about real estate rentals for 3 years now, making little side huddles along the way…
But I turn 18 in January, still a bit away, but close enough to start getting excited.
I was curious if anyone has any recommendations as to what I can do to prepare for the start of my real estate investing career. Networking? Specifically with whom? Get a better understanding of surrounding markets? Particularly what areas?
Anyways,
I have familiarized myself quite well with the area and my goals, now I’m just refreshing on some older books that originally got me into this.
I’d love to hear about networking and securing financing creatively… such as co-signs or using a guarantor ?
Would it be possible for me to secure a loan while building my credit, using family credit… etc?
Hey Nolan, I'm 28 and started getting interested in REI around 23. So, you're way ahead of the game. Looking back, I would tell my to: focus on building my credit -> save up for 3.5% down payment with an FHA -> and then house-hack a local 4 unit. If you do it right, you'll live for free or close to it, and have your tenants pay your principal.
Put more focus on quality over quantity. My first two purchases were with a focus on quantity. While they gave me profits, they also gave me lots of headaches and lost sleep. I sold those a few years later. In other words, pick a few good houses in a great area that you'd want to live in, over a crappy area that will "cashflow better".
For networking, aside from a local meetup, you'll primarily want a rockstar agent on your team. Make sure they actually invest in rental real estate themselves and aren't just "investor friendly". Pick the right one, and they'll often be your gateway into a solid lender, contractor, and more.
@Owen Thornton If I could go back in time I'd change a few of my actions and my mentality towards money. I wasted most of my money on things and didn't save for my future. Read, research, and understand that money sitting in a savings account does nothing for you. After you have an emergency fund use the rest to find, buy, or build assets that create wealth. It doesn't have to be real estate. I flipped two cars this year because it's fun and I found great deals.
Find a way to add value for someone else's life. Sacrifice your TIME (without leverage) and add some skills a long the way related to real estate investing if that's what you want to do. Had I done more of than right after college I'd own more rental properties and be confidently flipping a few in my market. I had some skills just didn't realize it. Take BABY STEPS towards REI goals. The bigger the step the bigger the risk. Once you have some passive income and/or a stable 9-5 you can start taking better risks but that comes from experience.